Kinect-Less Xbox One Drops $499

Microsoft has unveiled a lower-priced option for its Xbox One in a bid to wrest sales from market leader Sony.

The new version, which will cost AU$499 won't include the Kinect motion-sensing camera, will be available on June 9 in all markets.

JB Hi-Fi already have the standalone Xbox on preorder online for $498, as have EB Games.

The retailers are also throwing in a free Forza game download.

Released late last year, One, flagged as "the ultimate all-in-one entertainment system" previously sold for $599 - $50 more than arch rival Sony PS4.

Microsoft's move is seen as a bid to take on P4 which has been outselling One.

The move reverses a controversial decision by Microsoft to bundle Xbox One with Kinect, increasing the price by $100. Kinect allows gamers play using motion gestures and voice commands, without the controller.

The cheaper Xbox One now contains: Console, Wireless Controller, Chat Headset, HDMI cable and Power Supply.